Crypto regulations must be enacted through an act of Congress to become permanent and meaningful pieces of legislation, according to former Congressman Wiley Nickel.
In an exclusive video interview with Cointelegraph’s Turner Wright, Nickel urged bipartisan collaboration to push through comprehensive crypto regulations. The former Congressman added:
“I think it’s really important for anybody who cares about this issue to step back and realize that if you want lasting change in Washington, you must move legislation through Congress. Otherwise, if you’re talking about executive orders, it will just go back and forth.”
“You don’t want to have the mess that we saw just months ago with Gary Gensler’s SEC — you need to get legislation through Congress,” Nickel reiterated.
Both chambers of Congress rush to push through meaningful legislation
Rep. Tom Emmer, the majority whip of the United States House of Representatives, reintroduced legislation banning a CBDC in the US on March 6.
Wyoming Senator Cynthia Lummis also reintroduced the Bitcoin Act in March, which builds upon an earlier bill of the same title but allows the US to purchase more than 1 million Bitcoin (BTC).
Rep. Byron Donalds recently announced that he would draft legislation to codify the Bitcoin strategic reserve into law — shielding President Trump’s original executive order from being overturned by a future administration.
On March 12, the House of Representatives repealed the IRS broker rule requiring decentralized finance platforms to report information to the Internal Revenue Service in a 292-131 vote.
Speaking at this year’s Blockworks Digital Asset Summit, Democrat Rep. Ro Khanna said that Congress should be able to pass comprehensive crypto regulation in 2025, including a stablecoin bill and a market structure bill.
Stablecoin issuer Tether is reportedly engaging with a Big Four accounting firm to audit its assets reserve and verify that its USDT (USDT) stablecoin is backed at a 1:1 ratio.
Tether CEO Paolo Ardoino reportedly said the audit process would be more straightforward under pro-crypto US President Donald Trump. It comes after rising industry concerns over a potential FTX-style liquidity crisis for Tether due to its lack of third-party audits.
Tether to produce first full audit after scrutiny
“If the President of the United States says this is top priority for the US, Big Four auditing firms will have to listen, so we are very happy with that,” Ardoino told Reuters on March 21.
“It’s our top priority,” Ardoino said. It was reported that Tether is currently subject to quarterly reports but not a full independent annual audit, which is much more extensive and provides more assurance to investors and regulators.
However, Ardoino did not specify which of the Big Four accounting firms — PricewaterhouseCoopers (PwC), Ernst & Young (EY), Deloitte, or KPMG — he plans to engage.
Tether recorded a profit of $13.7 billion in 2024. Source: Paolo Ardoino
Tether’s USDT maintains its stable value by claiming to be pegged to the US dollar at a 1:1 ratio. This means each USDT token is backed by reserves equivalent to its circulating supply.
These reserves include traditional currency, cash equivalents and other assets.
“[Tether is] one of the biggest existential threats to crypto. As we have to trust they hold $118B in collateral without proof! Even after the CFTC fined Tether for lying about their reserves in 2021,” Bons said.
Around the same time, Consumers’ Research, a consumer protection group, published a report criticizing Tether for its lack of transparency.
Just three years prior, in 2021, the United States Commodities and Futures Trading Commission (CFTC) fined Tether a $41 million civil monetary penalty for lying about USDT being fully backed by reserves.
Meanwhile, more recently, Tether has voiced disappointment over new European regulations that have forced exchanges like Crypto.com to delist USDT and nine other tokens to comply with MiCA.
“It is disappointing to see the rushed actions brought on by statements which do little to clarify the basis for such moves,” a spokesperson for Tether told Cointelegraph.
Cointelegraph reached out to Tether but did not receive a response by time of publication.
The government of Nigeria is still open to crypto businesses operating in the country despite the ongoing lawsuit against crypto exchange Binance and the high-profile detention of Binance executive Tigran Gambaryan.
Nigerian Information Minister Mohammed Idris told Semafor that many crypto businesses operate inside the country that are not facing litigation or criminal prosecution.
“This is part of the effort to strengthen our laws, not to cripple anybody. We are ensuring that no one comes and operates without regulation,” Idris told the outlet.
Nigeria filed an $81.5 billion lawsuit against Binance in February, claiming the exchange crashed Nigeria’s local currency, the naira, and said that Binance owed $2 billion in back taxes as the Nigerian government continues to grapple with sensible crypto policy.
The naira M2 money supply has been rapidly increasing since March 2024. Source: Trading Economics
Nigerian regulations don’t give crypto investors hope
The Nigerian Securities and Exchange Commission overhauled its crypto regulations in December 2024, tightening laws around crypto marketing and advertising.
More specifically, the updated law requires digital asset providers operating in the country to obtain permission before third-party marketing firms can run advertisements on behalf of the firms.
In February, Nigerian regulators also announced a plan to tax crypto transactions for revenue generation.
According to Chainalysis “2024 Global Adoption Index” report, Nigeria ranks second globally for crypto adoption, while India claimed the top spot.
Nigeria ranks second globally for crypto adoption. Source: Chainalysis
Chainalysis also found that the African country received $59 billion in cryptocurrencies between July 2023 and June 2024.
Despite these impressive figures, taxing crypto transactions may not bring in the revenue desired by the Nigerian government.
Nigeria leads African countries in terms of cryptocurrency value received. Source: Chainalysis
Coin Bureau founder and market analyst Nic Puckrin said Nigeria has a robust over-the-counter market for retail crypto trading, which evades centralized exchanges and is difficult to track or tax.
Puckrin added that importers use crypto to circumvent the high volatility of the Nigerian naira and escape foreign exchange risk.
The rapidly depreciating value of the fiat currency makes it unlikely that the importers will stop using crypto, and these importers will be hard-pressed to report their crypto transactions, which can be conducted peer-to-peer, to the Nigerian government.
Coinbase is in advanced talks to buy Deribit, a cryptocurrency derivatives exchange, according to a March 21 report by Bloomberg.
Acquiring Deribit — the world’s largest venue for trading Bitcoin (BTC) and Ether (ETH) options — would bolster Coinbase’s existing derivatives platform, which currently focuses on futures.
Coinbase and Deribit have reportedly alerted regulators in Dubai to the deal talks. Deribit holds a license in Dubai, which would need to be transferred to Coinbase if a deal goes through, according to Bloomberg, which cited unnamed sources.
In January, Bloomberg reported that a deal with Coinbase could value Deribit at between $4 billion and $5 billion.
Deribit lists options, futures and spot cryptocurrencies. Its total trading volumes last year were around $1.2 trillion, Bloomberg said.
Cryptocurrency derivatives, such as futures are options, are surging in popularity in the US.
Futures are standardized contracts allowing traders to buy or sell assets at a future date, often with leverage. Options are contracts granting the right to buy or sell — “call” or “put,” in trader parlance — an underlying asset at a certain price.
Both types of financial derivatives are popular among both retail and institutional investors for hedging and speculation.
Coinbase lists derivatives tied to some 92 different assets on its international exchange and a smaller number in the US, according to its 2024 annual report.
In January, Robinhood rolled out cryptocurrency futures as the popular online brokerage redoubled its efforts to compete with Coinbase.
In February, CME Group, the world’s largest derivatives exchange, said it clocked an average daily trading volume of approximately $10 billion for crypto derivatives in the fourth quarter of 2024 — a more than 300% increase from the year prior.